Topic > Walmart Case Study - 1606

Wal-Mart, now called Walmart, is the world's largest public multinational by revenue in 2010, operating a chain of discount department stores and a chain of warehouses worldwide. Walmart focuses on improving sales, constantly reducing costs to offer goods at the best price, adapting efficient distribution and logistics management systems to ensure the constant flow of goods, and using innovative systems and IT to accurate and efficient operational processes. There are always great distribution systems behind successful supply chain management, and the same goes for Walmart. Walmart owes much of its past success and future growth expectations to its ability to self-distribute merchandise from a vast network of modern distribution centers served by a fleet of privately owned trucks. It has a developed distribution system that allows the company to quickly meet customer needs. In Walmart's distribution system, distribution centers are the most important part. Walmart has numerous distribution centers located in different geographic locations within a certain distance which allows each store to receive replenishment within a day. Each store can choose a number of delivery plans. Walmart also has its own warehouses that can supply 85% of inventory directly, compared to 50-65% for competitors. Therefore, Walmart can provide replenishment more quickly than its competitors. It only takes 2 days while others need at least 5 days. Running your own distribution center reduces not only distribution times but also shipping costs. Each distribution center is divided into different sections based on the quantity of goods received and is managed in the same way for both crates and palletised goods......means of paper......strength of both supply chains, Seven-Eleven is more responsive and Walmart is more efficient. This difference occurs due to the difference in priorities. Responsiveness is the most important thing for Seven-Eleven as it deals with the convenience store supply chain. On the other hand, responsiveness is also important for Walmart, but efficiency is the priority in my opinion. Customers go to Walmart because they can get goods at the cheapest price. Seven-Eleven has a franchise system, but Walmart stores are wholly owned by the company. While Seven-Eleven flows all products through the distribution center, some products available in Walmart stores are delivered directly from the supplier. Comparing Walmart and Seven-Eleven, there are some differences. In my opinion, many of these differences are due to the fact that Walmart has strategies suited to Americans while Seven-Eleven's strategies are suited to Japanese.